Treasury's $90 B 4- and 8-week bill offerings garnered mixed results
Treasury's $90 B 4- and 8-week bill offerings garnered mixed results after a pretty choppy morning. The shorter tranche outperformed, in part thanks to the inverted curve, and the cut in size. It's still the case, though, that the bill sector is an attractive place to park cash. The $50 B 4-week stopped at 1.940%, 1.5 bps through the 1.955% at the bid deadline. And it's 8.5 bps rich to the 2.025% at last week's sale. It is the lowest since August 2018. There were $139.1 B in bids for a 2.81 cover, stronger than the prior 2.69 and the 2.75 average, but it was flattered by the $5 B reduction in volume. Indirect bidders took 40.0%, in line with the 40.5% last week and the 39.2% average. The $40 B 8-week was awarded at 1.920%, right on the screws, and is 4 bps rich to last week's 1.960%. Bids totaled $114.4 B for a 2.87 cover, weaker than both the 3.18 over the last two weeks and the 2.94 average. Indirect bidders took 45.7%, also below the prior week's 57.0% and the 48.2% average.